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Europe: "€1 Trillion May Not Be Enough"
A core piece of last week's European newsflow was that following much pushback, Angela Merkel, who understands the underlying math all too well, finally dropped her opposition to expanding the European "firewall" in the form of a combined EFSF and ESM rescue mechanisms, to bring the total "firepower" to €800 billion (ignoring for a moment that when the true dry powder of the combined vehicle is just about €500 billion net as explained here, hardly enough to rescue Spain, let alone Italy). Yet as has been explained here repeatedly, and as Merkel has figured out, this is easily the most symbolic expansion of a rescue facility ever. Because while the ECB's agreement to allow Eurobanks to abuse its €1 trillion discount window for three years (which is what the LTRO is), following the replacement of JC Trichet with a Goldman apparatchik, at least infused the system with $1.3 trillion in new fungible liquidity (and resulted in a stock market performance boost for the ages, one which is now unwinding), the 'firewall" does not represent new money, nor is a "firewall" to begin with - it is merely one massive contingent liability which will remain unfunded in perpetuity. Slowly the German media is waking up, and in an article in Der Spiegel, the authors observe that "Even a 1-Trillion Euro Firewall wouldn't be enough." And they are correct, because the size of the firewall is completely irrelevant, as explained later. All the "firewall" does is shift even more backstop responsibility on the only true AAA-country left in the Eurozone, Germany. However, the main cause of problems in Europe - a massive debt overhang which can at best be rolled over but never paid down due to the increasingly lower cash flow generation of Europe's (and America's) assets, still remains, and will do so until the debt is finally written down. However, it can't because one bank's liability is another bank's asset. And so we go back to square one, which is that the system is caught in the biggest Catch 22, as we explained back in 2009. We are glad to see that slowly but surely this damning conclusion is finally being understood by most.
From Spiegel:
European finance ministers meeting in Copenhagen on Friday agreed to boost the euro-zone firewall to over 800 billion euros. The move marks another U-turn on the part of the Merkel administration, which recently dropped its opposition to increasing the fund. German commentators warn that even the new firewall may still be too small.
Austrian Finance Minister Maria Fekter announced on Friday that the permanent euro rescue fund, the European Stability Mechanism (ESM), would be expanded, by considering the around €200 billion in current bailouts as being separate from the €500 billion earmarked for the ESM -- originally, the €500 billion figure was to have included the €200 billion in existing aid. The ESM, which is due to come into operation in mid-2012, will also be boosted by including around €100 billion in bilateral aid that was given to Greece in 2010, as well as aid from other EU funds, bringing the firewall's total capacity to over €800 billion.
Fekter expressed her confidence that Friday's move would be enough to calm the financial markets. "The markets are already signaling relative calm," she said. "That shows that the markets can work with what we have set up here."
The Nuclear Option
On Thursday evening, in the run-up to Friday's summit, German Finance Minister Wolfgang Schäuble had said he was prepared to combine the existing bailouts with the new permanent mechanism. He said that the €800 billion capacity was "convincing" and "sufficient."
But not everyone shares his view that the sum is enough. On Thursday, French Finance Minister François Baroin called for the permanent euro bailout fund to be increased to €1 trillion, to shore up market confidence and prevent contagion in the euro crisis. "The firewall, it's a little like the nuclear option in military planning, it's there for dissuasion, not to be used," Baroin said in a radio interview. He was echoing calls made by the Organization for Economic Cooperation and Development (OECD) earlier in the week to boost the firewall to €1 trillion.
The German press is also finally starting to wake up:
The center-right Frankfurter Allgemeine Zeitung writes:
"It is to be doubted whether all members of the Bundestag actually understand the financial dimension and the technical details of the ESM. It doesn't help matters that the federal government has repeatedly shifted its position on this issue -- as the SPD's floor leader Frank-Walter Steinmeier rightly pointed out."
"But the entire euro rescue is a balancing act. On the one hand, fiscal discipline needs to be promoted. The pressure on the crisis-stricken euro-zone members to carry out reforms must not be undermined by the knowledge that, if they fail, they will be caught by a financial safety net. On the other hand, there is the need for solidarity. Those countries that are in a better position can 'help the others to help themselves,' as Schäuble put it."
"As always in the EU, these things lead to compromises in practice, which also explains why the government has readjusted its position on the ESM. The high ratings that Merkel enjoys in the polls may be related to the fact that the Germans seem to intuitively understand this delicate maneuver."
The left-leaning Die Tageszeitung focuses on the calls to boost the ESM to €1 trillion:
"A trillion! That's how much money France is now demanding for the euro rescue fund. Until now, Chancellor Angela Merkel only wanted to come up with €700 billion. On the surface, it looks as if a Franco-German showdown is on the horizon. In fact, it is nothing more than a PR battle, where nothing is really new. It was already clear last summer that the existing EU rescue fund, the EFSF, was much too small to save Italy or Spain in an emergency. Even then, people were talking about €1 trillion as a target."
"One trillion euros is a lot of money, and yet even this huge sum will not be enough. But again, that's nothing new. For months, calculations have been doing the rounds that show that at least €1.5 trillion will be needed. The only interesting question left is how long it will take France and Germany to acknowledge this reality."
The last observation is off on the right track but is nowhere near close enough to the true conclusion, which was stated here yesterday by Mark Grant:
The Firewall Lie
Whether some proposed firewall is $760 billion or $1.3 Trillion or $13 Trillion makes no difference as in zero, nada, nothing and null. It is an IOU, a promise to pay and it is not counted in any European sovereign debt numbers nor is it counted in the figures for the European Union’s debt. It will not stop Spain or Portugal or Italy from asking for or needing money. It will not stop contagion nor will it protect any nation from the calamities of another nation. If approved by the Finance Ministers it is not approved by the European Parliaments and even if approved; it accomplishes nothing besides one more unaccounted for contingent liability that is nowhere to be found on anyone’s books. This whole discussion is a head fake, a deception and a ruse carefully plotted out for investors in one more attempt to mislead the entire world. If you wish to be a statistic in the Greater Fool Theory be my guest but I refuse to be apart of this unadulterated scam.
In other words, the next time a crisis flares up, the only thing that will delay the unwind, as the LTRO 1 and 2 did in late 2011, is another fresh injection of liquidity, whether in exchange or not for worthless collateral which was unused to begin with, as only new money can delay the unwind.
Of course, with every new trillion in incremental cash, now that central bank balance sheets are growing exponentially, more and more is now spilling over into hard assets, despite a clogged monetary transmission mechanism. The longer Europe's farcical crisis continues, the more the status quo will have to fight tooth and nail to prevent an explosion in hard asset prices expressed in fiat. This is a fight they will lose.
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"totally unexpected"
€ bullish.
i have zero € sympathy. if any small business or individual attempted to salvage their untenable dealings such as EuroZone, they would be assed out on the street in no time. Why are we wasting our lives and energy on a bunch of shitheads running shitty institutions? This is insanity.
I don't blame them- it's not like Uncle Bennie and Little Timmy are ever gonna say "no"........
This is all kabuki to mollify German voters. Same as the kabuki we had here. They'll just keep boiling German frogs and shoveling money into the black hole. If necessary, Bernanke will pick up a shovel, too. The banks will be saved. EOS.
Well said.
There are 2 eternal truths re the EU to always keep in mind:
1. The EU will not collapse - it will become a full political union as intended from the start.
2. No amount of human suffering or popular opposition will stand in the way of this agenda.
...everything else is noise.
This insanity is like drinking for some folks…
One trillion is too much and 10 trillion is not enough
Europe ain't shit without her former colonies in Africa, India, and China, Egypt, Turkey, etc.
Eurotrash must pick up their own trash.
What then is the US without it's militarily/terror maintained colony Saudi Arabia? (Really a war in Iran would be disastrous for the US, if the bogey man is lost only the threat of direct force will keep Saudi Arabia handing out cheap oil for dollars.) The Eurozone is closer to being able to pay it's own way (trade balance wise) than the US.
didn't say US wasn't an empire.
in fact that's what New World Order is all about.
Old world order = europe and her colonies
New world order = US and her colonies (China = manufacturing, Mexico = food production, India = backoffice, Middle East = oil)
US acts as the mafia protector with her military and collects taxes from colonies via wall st. US is aiming for monopoly over world food and energy production to complete the empire's full glory.
but Iran is getting in the way. and China, Russia have progressed in technology to challenge US. Do you wonder why there is a sudden push for STEM???? US needs more STEM grads to come up with better drones and such becuase Russia, China, Iran already hacked that.
It's gonna be a real monster when it hits a godzillian. It'll be mothra enough I think.
This is why we buy police protection; To keep this from happening to us.
Breakfast in Collinsville (with Michael Reichert)
http://www.youtube.com/watch?v=rJqq6KCOkdM&feature=player_embedded
My lottery number recently came up;
How much longer do we have to put up with this happy horseshit in America?
I recently got pulled over and given 3 tickets in Cape Coral, FL where I'm a property owner and pay taxes for the local police department, driving the same route every night going home from work at near driving perfection around 12 midnight and virtually no cars on the road in Cape Coma.
I plan on making a video just like this for Youtube to show people the absurdity of having to put up with this from our employees.
Crazy story.
For a while in the US I had a VW Scirocco and every small town cop would tail me, hoping I'd lose control on my right foot and catch me.
I used to drive @ 25 in a 40 MPH zone just to get under their skin.
Cops work for Corporation USA and it's Sub-Divisions. Sub-Divisions.... COmpany Divisions? No co-incidence there.
AND, 1 Trillion Euro is intended to be Not Enough. Always jusssssst not enough. Juuuust a leeeedle more and we'll be over the hill.
ori
chilling-silence-from-san-onofre-and-other-things/
VW Scirocco?
Dude- the cops were following you, waiting to pick up parts that were gonna fall off and cite you for littering.....
jcaz, for the money I had then, that car was AWESOME! And yup, cops tailed, it was er... slightly modded.
Had to sell it for rent money as I slid down the great american jobless rabbit hole without the net of any social security. Heckkkk of a ride. Anyways, The Roc was a blast in my past.
ori
yes and yes
As a european I say: let it all burn and crash!
Your arms are not too big to flail! Flail away!
Classic Jim! :-)
ori
You just perfectly summed up "Too Big To Fail."
Radio Zero, where are you on a Saturday Night?
Merkel is a Socialist/Statist at heart despite calling her self conservative, this is not about money and Merkel knows it, it's about the preservation of the Collectivist ideology in Europe they will push this to the breaking point untill we see a 2nd Hitler or worse Ascending. They didn't learn from history, jewish rule/dominance always leads to 1 Final Solution sooner or later it's innevitable ..
yes, we on the Eurasian continent are less individualistic than you Anglo-Americans, and even the Brits and the US coasts are less individualistic that you - I'm presuming you are an inhabitant of "Red America". Old World/New World.
so what? how many are you? how much greater is the part of humanity that thinks you are slightly on the loony side? reality check? ;-)
No I was born in Eastern Europe(less than 30 years ago) currently residing in Wester Europe :)
But I agree with your observation, people of Europe tend to have a collectivist attitude, while people of America are/where the Europeans who could no longer stand this attitude on the Old Continent, I wish I could leave Europe too but atm I am stuck here .. at least for a few more years
LOL
Ah, contempt prior to investigation.
ah, I always forget you guys - sorry, from my heart. IMHO, having a few armies rolling over your lands every half generation gives a more "collective" attitude than if you live on islands or on some very isolated region.
I wish I had more knowledge of your generation of Eastern Europeans. I understand your older generations better, but you post-Berlin Wall I don't "get". May I ask where you would like to go if you could?
try the West. Just remember..."they have the same attitude towards gold as everyone else now":http://www.youtube.com/watch?feature=player_detailpage&v=ciez9G4cADE
Your nick "Azannoth", your avatar with Death with a doble-bladed reaper, I would have thought
1. under 30; 2. gamer; 3. interested in the occult; 4. North or South American; 5. Uni-degree; 6. technical work, perhaps IT; 7. rock music
as you see, I don't "get" the younger generations of eastern europeans - as I find out everytime I go there, just shortly in Odessa and Budapest.
perhaps because your age-cohort spends a lot of time on the internet? I remember when a photocopier was taboo in your parts... ah, the memories!
You got most of it right! But I am not representative of my background country nor generation I am a free thinker anarchist(politically) capitalist(economically) hedonist rationalist atheist individualist (racist/nationalist(socialy) - and no there's noting to be ashamed of) not many people walk this Eearth that have my degree of hmmmm intelectual freedom to play with maybe that's why I have next to none real life friends and am forced to haunt places like ZH
ah, I'm also not representative of mine... but since I'm older I'll give you a tip (compulsive senile liberty): cherish your friends, even if you have few
no, nothing to be ashamed of, I agree - though free thinking and anarchist is though bread - basically it's always them getting in the way ;-)
racist? how this? nationalist I can "grok", I see it as a counterflow after all the communist and I expected it, but racist? don't understand...
by racist I mean Darwinist and Eugenicist, something that was mainstream at the beginning of the 20th century, I reject the mixing of races(for the larger part) and helping genetically inferior people(ie. born with genetic disorders etc.) and see competition for survival between races and nations and individuals as essential to the survival of the human race in general - a modern day Spartan Warrior
Lol.
If indeed your aim is improvement of the gene pool I suggest you brush up on your evolutionary biology.
I won't suggest the low hanging fruit (perpetual abstinence).... Due to the near certainty your 'tude is a learned "present" from your 'rents (as opposed to a genetic trait). Perhaps you will outgrow it...
I guess not.
I see people like you as basically barbarian. What u define as "essential to the survival of the human race in general" looks to me like the path towards extinction. Be my guest. Happy to be so far away...
Eugenicist. Ok, ok, not long ago I would have started a big fight because of this, but recently I've found some interesting scientific studies that point to a genetic souce of xenophobia and xenophily, so I'll rest on this - funnily it "fits" to the model I have in my head, the communists suppressed too much this kind of thinking
nationalist, now on this I have a question: are you aware of this ratio to explain how big government is? by determining how much the State Quota is, i.e. what part of the GDP is spent by government?
what range is for you ok? most western european nations are hovering between 30% and 50%... less, or much less? sorry if I'm nosy, but I sense an anarchist vs. nationalist dilemma...
Government not bigger than 5%-10%(in times of peace), I am a nationalist only in terms of genetic(racial) similarity not political/religious/social or geographical boundaries
anarchist(politically) vs. nationalist(socially) - it's not hard at all to square this circle, anarchism comes from the individualist consciousness while nationalism comes from the selfish-gene
How is it that you speak English so well? It just pisses me off to no end to hear non-native speakers expressing themselves so well, better than me, actually, in my native tongue.
English is my adoptive language(adopted by me, not that i was adopted or anything) and I nearly forgot my mother-tounge(also by choice as it no longer serves any purpose)
And yourself?
1. Smarter than the average person.
2. Douchebag. Specifically, racially, nationally, and genetically influenced.
I have more but I'd just be emulating you if I continued, no thanks.
Pentagon requests more "aid" for Israel from U.S. Congress to pay for Iron Dome missile system.
http://www.haaretz.com/news/diplomacy-defense/pentagon-to-seek-additiona...
The best explanation (by far) is from the British blog, "The Slog", who has inside contacts within the much-reviled EU. His knowledge of the disreputable ins and outs of that disastrous entity are great. His writing is very "British" but warning - comments are regulated and such things as "go bitchez" are not allowed. Think of a top hat, stiff drink and steely resolve. http://hat4uk.wordpress.com/
oh, I love the Slog and I think he is intellectually very honest - though yes, his point of view is very British and he still does not "grok" us Continentals - sometimes he gets the pieces, assembles them and then somehow gets the completely wrong conclusions... you can't get far on a "crime scene" if you get the motives wrong
a fresh pearl from the Slog:
"There are times when even an anti-conspiricist like me has to wonder about the Anglo-American business MSM, and whether there are some things they just won’t print. Rupert Murdoch loathes the EU and would do anything to sink Britain – hence the WSJ coverage. But most of them seem at times to look the other way when this kind of stuff happens."
Yes, Ruppie loathes the EU, this is clear - but his war in Britain is against the monarchy, not the country. Sloggie already forgot how King Rupert chastised the Parliamentary Commission on his last visit...
I thought he (Slog) meant that Rupert would do anything to sink the UK's association with the EU. I guess it's all interpretation.
Close your eyes and think of England...
And this is supposed to shock us how?
ZH 2013: "€1 Trillion May Not Be Enough"
ZH 2013: "€10 Trillion May Not Be Enough"
ZH 2014: "€100 Trillion May Not Be Enough"
ZH 2015: "€1,000 Trillion May Not Be Enough"
ZH 2016: "The ECB Riot Cam Has Arrived"
Imagine just how bad this crisis would be if we didn't have the ability to create debt out of thin air?
Helicopter Ben, is that you?
This here is my surprised face.
Hey tsar, send my last regards to the tall missus for showing her teeth LOL
The debt jubilee draws closer. Oh yeah, I forgot to mention that this jubilee will be for the banks and their CDS holdings, not you.
The ' ECB' will underwrite everything. If they don't the " Ghost bank" will! BiS and that Other Bull Shit ( one way) ass clown, wanabe-bank will.
I know the name of the " Nuclear Option"!
Rescue for how long? I don't understand how you can arrive at a number that will fix the problem when the problem is insolvency. There is no amount of money to fix an enterprise that loses money forever.
the answer to life the universe and everything = 42
I wish! Good on ya.
Damn, I always tell my honey it is 69! Well this hitch hiker is only off by 27.
Nevermind.
"which can at best be rolled over but never paid down due to the increasingly lower cash flow generation of Europe's (and America's) assets, still remains, and will do so until the debt is finally written down."
It has been asked here before. Can Bernanke print faster than the speed of gravity ?
32 feet per second per second is nothing when you can add another zero to the end of digits on a bill. fiat relativity.
Sorry about the OT, speed of gravity is at least 10^10*c, that is why there is no observed gravitational aberration with respect to the sun.
Despite all the shoveling of money into the greedy mouths of bankers, the "enterprises" in question are in fact cutting down on expenditures ... they are not doing it as fast or as efficiently as possible because they know they will always see a small percentage of the money spend to save the bankers ... but they are still doing it, slowly but surely the Greek trade balance is improving for instance.
Once the PIGS have trade balance and their debt has been transferred to the tax payers of the other Eurozone countries we will have a modicum of stability again ... of course as long as wealth concentration/overpopulation/resource exhaustion continues there can be no true stability, but we might be able to kick the can on this current crisis.
So you are saying: insolvency: situation normal fubar
*Begin sarcasam*
No worries, we here at the Central banks know what we are doing. We are afterall the smartest guys in the room. That's what our Ivy League degrees tell us anyways.
Hell, we even got them printed on our business cards:
Jason Sensation
International Banker Extrodinare!
Bilderberg Rep
"We Are The Smartest In The Room"
We Are The Smartest In The Room"
Easy to do, when you exclued everyone else from the room. Too smart by half.
The Dutch still think they are Mega rich and this is all a problem of other EU countries.
Ha Ha Ha Ha Ha
Our multinationals are, the state used to be, we never were. Except for Germany none have ever been.
I welcome JUNKS! It means people are listening!
Long Kevlar!
"Defeat is not an option" - Charlie Sheen
Are you mad at " Carl Icon" over that Lions Gate deal? Personally. you are a good poster!
"The firewall, it's a little like the nuclear option in military planning, it's there for dissuasion, not to be used,"
And that is what they all say but they overlook the risk of al-Qa'ida obtaining a suitcase sized Speedmaster CD 102 banknote press
holishitoli!
another clone! (the noob didn't hyphenate the family name, and is usiing the "l" nit the "I"...)
FYI: slewie the pi-rat shall be neither answering nor issuing any "contactRequests" for the foreseeable future
not a bad first post: got the nukuler + the alQ + the 'suitcase'
so, let's all say "hi" to fuking bilary, BiCheZ!
"imitation is the highest form of flattery", slewie [or something like that]. Nevertheless, a bit bizarre in this forum
Al Qa'ida is us. A fabrictaion for the market. It is a different chameleon for EU, for China, for everyone.
...and here's ole cowpie_jack, back for two weeks, now, after six months in moth balls: [1/2 (50%) of his "time" here... ]: to pick up the alQ theme from clonieBilary on a string about...EU bailout financing?
bilary is all over this site, isn't she, tyler?
don't stop drinking, tho! yes! i "hope" [paste]: "We are glad to see that slowly but surely this damning conclusion is finally being understood by most."
Hahaha! nice to be heard tho...
Heck sSlewie! We know you are the " code master" Jesus/ you just went hyper on us!
Plus 1 Brother.
Nice to see you, good to be seen; Flattered, I'm sure.
well, when "nobody" uses you, here, for six months, i'm sure even getting called out as a total douchebagTroll is an improvement, asswipe
Plus1 >>>>>> pOOOF! iNA GOOD WAY!
What an honour, to be called a douchebag troll by you.
yer repeating yerself, toy-boy
don't forget, ass-bot: when somebody uses "alQ, suitcase & nukuler" you must tell all the MSM sock-puppets: Al Qa'ida is us.
how else would they ever get theTruth?
keep reponding to spook-botFoggyBottom clones like you know some real intel?
yeah! that's the ticket!
run along, now, son
the slavery of multiple future generations won't be enough
They're going after the Irish as we speak.
http://www.boston.com/news/world/europe/articles/2012/03/31/ireland_face...
Countries like Ireland and New Zealand are truly the best examples of the rising of neo-feudalism in this world.
The cries of debt slavery from trade deficit countries always sound a bit hollow, because in the end they still have subsidized consumption ... but countries with trade surpluses which are maneuvered into current account deficits by their traitor governments ... there can be no doubt those are debt slaves.
That said, opposition against property taxes are almost certainly propaganda by monied interest ... you're falling for astroturfing IMO.
Exactly right. We now have debt in perpetuity unless the system spontaneously combusts. The only way to reset the clock is to impose economic genocide on those over 65. Deprive them of government handouts and tax their assets to death. This is what governments will do rather than tax the elite, rid itself of unproductive wars and bureaucracies and punish the bankers.
Pfffff
here's my ctrl-p:
silver bitchez!
Well, it certainly isn't enough for U.S. spending, particularly if Obamacare is upheld.
http://confoundedinterest.wordpress.com/2012/03/31/housing-market-losses-at-11-66-trillion-but-still-less-than-obamacare-funding-hole-at-17-trillion/
You're at your job, if you have one; the acclerated three card monty continues apace. What does it mean for the intellectually challenged MSM reading schlub? Screwed, totally fucked? Where are the real lightening rods? And, please,spare me the Ron Paul bullshit.
The people.
Will we ever stand up and stop this raping?
If everyone felt like me, it would be done already.
Hey ! Didn't you just have your anal sphincter replaced with one that works. It was embarrassing having you around shitting on everbody.
Hearts, like deficits, don't matter.... uhhhh.... until they do.
Actually, I replaced one asshole (Henry Kissinger) with another (Dick Cheney). That's the good thing about my name. There are SO MANY assholes out there, I could change the picture daily and still never run out.
May I offer the a-hole in my picture? He's well deserved!
Gas prices aren't high enough yet.
Think of gas prices as an S&P 500 for American civil unrest.
Once they go past 5/gallon and stay there, we'll have entered a new phase of American history.
i'm stockpiling more of everything ! more shoes, more socks & shoes,silver, canned goods, you name it, i'm stockpiling it ; even if i do not use it, i can barter it. those people who hoard things will be the winners ! these fuckers aren't going to get the better of me. i'm not stupid anymore; damn the bankers & their paper money, all be damned to hell . (p.s. one of my family members is finally understanding; he is now helping me stockpile. ... what it doesn't take to get thru to people ! )
Hi Lynnybee.
Good on ya !
Lynnybee, sometimes you can get to much of a good thing.... being a pack rat myself, it is easy to get carried away with the "hoarding mentality" until it becomes counter productive.... just saying.
Where was this one when I was in the market?
http://www.huffingtonpost.com/2012/03/22/doomsday-preppers-survival-plans-2012_n_1339950.html?ref=weird-news
The more the merrier, I always say...
Remember to use the silver against vampires and werewolves and save the gold for the Cybermen.
What does it mean for the intellectually challenged MSM reading schlub? Screwed, totally fucked?
Yes, until he/she leaves the corporate cocoon and drops out of the system.
There IS life outside of the televised script.
The sooner productive people bail out, the sooner this nightmare ends. Let the leeches suck their own blood.
The problem is land taxes,.
You cant live outside the system completely because you have to have a fiat income steam for land rates etc:
Thus everyone has a certain minimum level of contribution to the system.
If you dont pay, you simply accumulate interest till all your assets are gone...
The only way to really opt out is to "give away everything you have".
That was suggested by a man already.
Interesting..
Glad to see the video back.
If the ECB starts printing even more money rather than let things see their natural level and the market takes off again I'm going to freaking blow a gasket.
Because I'm short and the market keeps running against me.
Pffftt.....
LynnyBee and the rest of you/ I LIKE! Keep up the good work/posts...
how kind, i love everyone on ZEROHEDGE, too ...
Thank You Kindly " Lynny Bee". It is always a pleasure.
Ooooooh God. Let me explain one more time to the THEORETICIANS:
- In communism in eastern europe rule of law did not exist. The governments came up with constant LTROs and constant firewalls.
- Until all ended up with FOOD STAMPS. Imagine ALL EASTERN EUROPE PLUS ALL USSR, more than 30 states, probably around 400-500 million people.
- Getting close to year 1990 everybody understood that in order to have food and energy supplies via trade, our countries had to trade in exchange something valuable like other kinds of food and other kinds of energy supplies.
- Hence, it was understood that the concept of EXCHANGING ELECTRONIC MONEY WITH REAL CONSUMABLE GOODS does not work.
- Hence the crucial understanding of the current system: USA EXCHANGES ELECTRONIC DOLLARS FOR CRUDE OIL, CHINESE GOODS ETC.
- Hence China has been trying to internationalize RMB to achieve exactly that: EXCHANGE OF ELECTRONIC RMB WITH REAL GOODS.
- Hence, regardles of how much ECB prints, whether is trillions, quadrillions, quanti-nano-drillions, what matters is: WHO IS GOING TO ACCEPT THIS ELECTRONIC EUROS IN EXCHANGE FOR REAL GOODS. The answer is ABSOLUTELY-FUCKING-NOBODY.
- Canada where I live offers crude oil and grains in exchange for other goods and services.
- USA can stil pull this off, since US$ is not back up by anything valuable (gold, silver, crude oil, grains etc) but it is very strongly backed up by the US Military and All Its Might.
- Hence USA offers Protection (something like world peace) in exchange for real goods and services. Europe has decreased military spending to basically nothing, since USA is covering most of it
- Example: Bosnia and Kosovo that were European problems, were solved by USA, quite easily.
- Hence as long as the western world wants americans to provide for protection = american soldiers blood, and as long as USA is ok with that, than the western world and the rest of the world will keep exchanging electronic US dollars for Real Goods. Ron Paul is exactly trying to fight against and eliminate this system.
Do you understand Ms. Merkel? You were born and raised in Eastern Communist Germany. Why is that so difficult?
Sweet/ EKM! I'll get back with you.
A good man you are!
ekm, I don't think she has trouble to understand the points you have given. the question is more about what to do about them
What goods and services is the US getting in exchange for protecting Europe? feel free to provide some hard numbers and stats here if I msised something, Im certainly not aware of it.
If we got anything out of the deal that would be one thing, as it is we just get soaked financially to provide what boils down to a military welfare state for Europe. Its a bad deal, and time to get out of it if they dont want to fork over to maintain themselves in their collective cultural old age and senility. Total waste of money and effort for the US, and as the older folks still stuck in the Cold War pass on I expect a major shift as not many after the boomers think it makes much sense.
http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/united-states/
Click above for general data.
I am just making analytical points but NOT arriving at a conclusion. Data, particularly military expenditure data as well as well Military Related Emplyment data is very fragmentary and sometimes inexistent.
I have tried but have not been able to conclude whether the current system is a good deal for USA.
As far as Military related employment is concerned, nobody writes about it, simply because nobody knows what to write on.
'Hence as long as the western world wants americans to provide for protection = american soldiers blood, and as long as USA is ok with that, than the western world and the rest of the world will keep exchanging electronic US dollars for Real Goods. Ron Paul is exactly trying to fight against and eliminate this system.'
Nobody wants US 'protection', you're misinformed. It's occupation so it's better you refer to it as such. The main motivation is geo-strategic for resources and funneling of USTs.
Thx for commenting.
Call it whatever name you want. I'm just laying out how the system works operationally.
Thanks for the link, looks like we pay for their military defense in order to run a trade deficit.
Just makes me wanna chant U-S-A! U-S-A!
You'ld think a german would understand the need to make others decrease their supply of blood and treasure while you increase yours......
http://www.infowars.com/timeline-to-americas-total-destruction-with-pastor-lindsey-williams/
Did L. Williams offer up an explanation as to why the EUR and USD didn't implode last august? I'm also still waiting to see the proof he has about all that oil under that island in Alaska. Why Jones still has him on his show is an even bigger question.
Meanwhile in the US of A, debts and unfunded liabilities keep growing at $8.13 trillion a year. The Fed is buying 61% of all US debt keeping interest rates very low. I wish I could keep my interest rates near zero by buying up 61% of my debt with money conjured out of thin air. I promise not to stop at 1 trillion euros. Does that qualify me for president of the ECB? Or should I have done God's work at Goldman Sachs to qualify?
Sorry, the serfs do not qualify for God's work. Next life, go to princeton.
My PhD thesis adviser had a PhD from Princeton. I never tried for Princeton - but then I never had psychopathic tendencies.
I’ll take Unfunded Central Banks for €3 Trillion, Alex.
"I’ll take Unfunded Central Banks for €3 Trillion, Alex."
Beautiful ! I coughed up my gold tooth.
...stiff little fingers and wasted life kinda fits the I's in PIIGS A? lol
http://www.youtube.com/watch?v=n3mqtXQAunw&feature=BFa&list=AL94UKMTqg-9DdmfzC-EsiQtj8Kp6e0Ziz&lf=list_related
well, now that we've dispensed with the psuedo neo-thermidorianism
we are simply left with fungible liquidity being added slowly, in a controlled manner, where
"slowly and conrolled" = unhhh, nearing hyperwarp of parabolicity
if we were trying to achieve the greatest good for the fewest number we'd be in a fuking golden age, i tell ya, BiCheZ!
bong-ho!
now I'm a confused muppet again. how do I know that you are the original slewie?
and why is nobody dispensing the ultimate flattery of copying to ME? Am I soooo boring (again)?
pseudo neo-thermidorianism? did you just coin this fantastic concoction? still digesting... ;-)
Why is that £/ euro so dysfunctional?
I blame LTRO. Mr. King of the BoE is doing straight QEs while LTRO is a quite new beast, at least at this levels.
markets are still quite unsure - even "seasoned" City of London FX traders with tons of anti-euro propaganda to read...
I respect your comments. I think we are on the same page. I'm tired of making ( simple things) complex!
I have been to London. London will never have a" Transaction tax"!
agree - all continental approaches are anathema for the City - the transaction tax is not good for the churn, and any attempt to stem or restrict hyperhypothecation will be deflected
now the Yen - this will be seriously interesting...
The exporters and the q2 Treasury run / should cap usd/jpy.
Kampo/ Transaction taxes/ demographics/ energy... ECT....
Chordius, have you not noticed that I almost always post with Yenny nearby. Alas, in the end it matters not from which laboratory a slewie crawled out from but the quality of the slewige dispensed.
LOL - it is you! "quality of slewige" indeed ;-) double lol
L0L! poor ghordi!
confused and un-cloned is no way to go through life...
clonie: have you not noticed that "yenny" works all three sides of the fence?
tripolar is a BiTCh
but please Ghordi is one of our Favs and one day the lab may get to work on Chordi.... yaaaawwn ... indeed one day when we all be ants (or is that aunts)
really? we have extra-dimensionals galore, here; i almost edited my comment b/c i thought i might have understated the case for Y/C...
yes, we are already familiar with the haroldCamping-esque device: "one day when we all be..."
you evangelical types aren't boring at all, tho...
welcome to zH, you shitheaded asswipe
I believe he's referring to the so-called Thermidorian Reaction, which put an end to the head-choppy phase of the French Revolution.
http://en.wikipedia.org/wiki/Thermidorian_Reaction
thanks - I'm familiar with the term - if I remember well it was what brought the "the revolution always eats it's own children" saying - it's "pseudo neo-thermidorianism" that makes my head spin
cool meme, got hold of me
Well Spoken. I do not ( whole heartedly) agree with you.
I know you are " of good intensions" Though!
"now I'm a confused muppet again." "how do I know that" "the original" "ultimate" "copying" "pseudo" "coin" ...wasn't some... "fantastic concoction? still digesting... ;-)"
Ms. Economy, I presume? Long time no see...
Chordius, tomorrow is ...?
(it is already tomorrow in Oz so to rephrase for AMERika "the day after tomorrow is ...?"
_____________
There will be massive defaults.
cHINA cpi @ 02:00 gmt!
I have all the [feeds]. Romeo)and( Juliet !
LOVE!
On Friday , VIX index closed with a bullish engulfing at weekly chart as well as April-2010.
So, 2-3 weks after april-2010,, it was a Flash Crash !
See here: http://pracompraroupravender.blogspot.com.br/2012/03/vix-fecha-com-engolfo-de-alta-no.html
It's all about " Liquidity". Any takers on that ( EFSF/ESM) model?
Delete/
that's a pretty handy FX link below @ yer 19:11 Y/C
thxz